Welcome to IPERS

1 Welcome to IPERS . Iowa Public Employees' Retirement System For New IPERS Members and Those Considering IPERS Membership Welcome to IPERS . For New IPERS Members and Those Considering IPERS Membership YOUR GUIDE TO IPERS MEMBERSHIP BENEFITS. Regardless of your retirement plans or anticipated retirement age, you want a financially secure retirement. IPERS helps provide the security you need through guaranteed benefits. Unlike benefits from other retirement plans, IPERS benefits aren't tied to the performance of the stock market. With IPERS , you don't need to make complicated investment decisions for your retirement dreams to become a reality. Your IPERS benefits are only one part of your overall retirement savings. Your total retirement income will come from a combination of your IPERS benefits, Social Security and personal savings.

2 This booklet briefly explains certain rights and benefits of IPERS membership. It is not a substitute for federal and state laws governing IPERS , which provide complete information and are subject to change. Although IPERS makes every attempt to ensure its materials are accurate and up to date, any conflict between the contents of the booklet and law must be resolved in favor of the law. The Member Handbook provides a more detailed description of IPERS benefits. It is available at 2 Welcome TO IPERS . A Plan Designed for You SECURE AND. DEPENDABLE. RETIREMENT BENEFITS. The IPERS plan is a defined benefit pension plan. The lifetime monthly No hassle, no risk . benefit you receive is predictable and stable because it is calculated using guaranteed!

3 IPERS uses a a formula. Your benefits grow with you throughout your IPERS -covered formula to calculate your employment. As your years of service and salary increase, your IPERS benefits, providing you benefits grow too. with guaranteed lifetime retirement benefits. Your IPERS , a public agency, was established for the purpose of providing benefits aren't tied to the a retirement plan to public employees throughout Iowa. As a public performance of the stock agency, IPERS ' goals are aligned with members' goals. market, so you don't have to worry about riding out IPERS benefits are designed to supplement personal savings and Social bumps in the market. Security benefits in retirement. IPERS benefits also offer financial IPERS takes on all the protection for families in the event of death or disability.

4 Enrolling in investment risk, providing IPERS is easy coverage is automatic for most employees. you retirement benefits you can depend on. For New Members and Those Considering Membership 3. IPERS Membership Strength in Numbers: Our Membership Membership Groups IPERS covers most Iowa public employees. With more than 360,000. members and approximately 2,000. employers, IPERS is the largest public retirement system in Iowa. IPERS offers retirement benefit stability and security members can count on. IPERS has three membership groups: Did you know? One in 10 Regular membership group (which makes up about 95%. Iowans is an IPERS member. of the membership). Sheriff/Deputy membership group Protection Occupation Most public employees in Iowa membership group automatically become members of IPERS when they start employment Members of the Sheriffs/Deputies with an IPERS -covered employer.

5 And Protection Occupations group Covered employers include: are known as Special Service Schools members. These members work in public safety occupations. Their Counties careers tend to be shorter because of State agencies the physical demands of their jobs. Cities The retirement benefits offered to Townships each membership group have some differences. The IPERS Member Other public employers Handbook provides a more detailed A list of positions eligible to choose not to description of benefits. participate in IPERS is on page 11. 4 Welcome TO IPERS . Contributing to IPERS . Both you and your employer contribute to IPERS . IPERS invests the contributions and holds the investment income in a Trust Fund for the exclusive purpose of paying benefits to members and their beneficiaries.

6 Seventy percent of benefits paid come directly from investments. The Iowa Legislature and IPERS is a prefunded Governor determine the retirement plan. That covered positions in each means the money membership group and employees contribute the benefits provided. today is pooled and invested so it can grow IPERS sets contribution rates and pay for their own as part of its annual actuarial future benefits. valuation, which applies actuarial Rates for all membership groups are assumptions and IPERS ' funding released and posted on policy. The rate for Regular members in November. New rates take effect the can increase or decrease by no more following July 1. than percentage point each year. Benefits of Contributing to IPERS . Automatic retirement savings.

7 Pretax deductions. Your contributions Automatic deductions from your reduce your taxable income. paycheck ensure you set aside It's easy. IPERS takes on all the retirment savings. investment risk. You don't have to Guranteed Lifetime Benefit. The worry about stock market fluctuations. lifetime monthly benefit you receive is predictable and stable. For New Members and Those Considering Membership 5. Membership Rewards Saving for retirement is important. or 403(b) plan, you take on the IPERS benefits are designed to investment risk. Benefit amounts are supplement personal savings and not guaranteed or easy to predict. Social Security benefits. Consider these rewards of IPERS membership. A Safety Net IPERS provides death and disability Security benefits.

8 These benefits protect you IPERS is a well-funded retirement and your family. plan. IPERS ' administration and an independent actuary scrutinize IPERS ' Portability financial statements yearly. IPERS ' You are always entitled to 100% of administrators evaluate the retirement your IPERS contributions and interest plan's sustainability and request earnings. If you change jobs to another changes when appropriate. IPERS -covered position, you can keep your IPERS coverage. If you start working for a non IPERS -covered The IPERS plan works for me. employer, you may leave your money in IPERS or take a refund. You can roll over your IPERS refund to another Making contributions is effortless, and I qualified retirement plan. know I'll get a benefit for the rest of my life.

9 If you are vested and decide not to leave your money in IPERS , you will IPERS MEMBER, AGE 22, STARTING PUBLIC SERVICE CAREER. receive a portion of your employer's contribution (based on your years Accountability of service) along with your own The Iowa Legislature and Governor contribution. You become a vested are the plan sponsors for IPERS . The IPERS member when you have seven Legislature authorizes spending from the years of service or when you reach Trust Fund for administrative expenses. age 65 while in covered employment, IPERS closely monitors and negotiates whichever occurs first. investment management expenses and Members vested with seven years of operates with a small and efficient staff. service can purchase IPERS service at Annual financial statements on the Trust retirement using personal funds or by Fund are available at rolling over money from a qualified retirement plan.

10 Worry-Free Benefits As a defined benefit plan, IPERS Resources provides lifetime benefits. IPERS IPERS helps you plan for a secure cannot lower benefits members have retirement. You can speak one-on- already earned. The amount of your one with a representative either in benefit is based on a formula that person or over the phone and internet includes your years of service, age, who can answer your questions and and average salary. With a defined address your individual situation. contribution plan, such as a 401(k). 6 Welcome TO IPERS . The Bottom Line: What's the Payout? The formula used to calculate to prevent overpaying your benefits. the annual IPERS benefit for all Your average salary will be decreased members, except Special Service if wage spiking has occurred.